SAGA Cancellation Fee £50!!

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Uzi
Uzi Posts: 21 Forumite
in Insurance & life assurance
Recently had to cancel a motor insurance policy with SAGA. Was hit with an £50 cancellation fee. Thought this was extortionate and thought I would let others know before they go with them. Maybe this is a normal fee but I doubt it.:mad:

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  • paddyandstumpy
    paddyandstumpy Posts: 1,486 Forumite
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    edited 14 October 2016 at 2:35PM
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    If you've been with the aforementioned Broker for a few years, the extortionate rates shouldn't come as a surprise. I've got a particular bugbear with this Broker, I've seen some rates which would make toes curl.
    And these are the rates which the customer pays, trusting the brand. The insurer gets a fraction of what the customer pays, I've heard about cases which are 4 figures expensive, and the insurer receives £200... Saga keep the rest but don't hold 'the risk'.
    And they recently defended their position in the Telegraph as "we don't take commission". They just call it something else.

    Rant aside, £50 is not unusual for a Broker.
  • Aretnap
    Aretnap Posts: 5,214 Forumite
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    £50 is not unusual; the Financial Ombudsman has upheld similar fees as reasonable (eg see the case study under "the cancellation fee is unfair", here.
  • dunstonh
    dunstonh Posts: 116,374 Forumite
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    Thought this was extortionate

    Most around the £25 mark but £50 is not uncommon. Its not extortionate really.

    Its not as if you buy SAGA insurance because it is competitively priced. Although its not a quality option either.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • teddysmum
    teddysmum Posts: 9,471 Forumite
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    dunstonh wrote: »

    Its not as if you buy SAGA insurance because it is competitively priced. Although its not a quality option either.



    It is sometimes the cheapest. Certainly for my old Punto and it was for my sister's M5, except for the last year she owned the car, when she went elsewhere.
  • teddysmum
    teddysmum Posts: 9,471 Forumite
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    paddyandstumpy wrote: »
    If you've been with the aforementioned Broker for a few years, the extortionate rates shouldn't come as a surprise. I've got a particular bugbear with this Broker, I've seen some rates which would make toes curl.
    And these are the rates which the customer pays, trusting the brand. The insurer gets a fraction of what the customer pays, I've heard about cases which are 4 figures expensive, and the insurer receives £200... Saga keep the rest but don't hold 'the risk'.
    And they recently defended their position in the Telegraph as "we don't take commission". They just call it something else.

    Rant aside, £50 is not unusual for a Broker.


    Saga are brokers ? That's a surprise as it doesn't mention that on their website.
  • paddyandstumpy
    paddyandstumpy Posts: 1,486 Forumite
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    They are most definitely brokers, they sell one product (with different cover levels) and have a panel of insurers who underwrite it.
    I can confirm this as I work for one of them, and see these premiums day in, day out.

    Just to clarify a common misconception here, the panel of insurers will compete to be the cheapest price, Saga willl then add their commission on (although they don't call it commission), this is the price the customer then pays.
    The insurer has no say or control over how much Saga adds on. But I've seen cases where the customer has paid over £1300 and we've only taken £200 of that. Saga keep the rest (less the I.P.T of course).
    It's absolutely diabolical, I make sure no one I know is insured with them, and I'd encourage anyone reading this to steer clear.
    They market as the trusted brand for the 50+, in reality the older you get, the more they fleece you.
  • forgotmyname
    forgotmyname Posts: 32,552 Forumite
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    SAGA also block you from getting quotes if your insured with them already, as soon as it detects your reg or postcode it will say see your renewal.

    Except the renewal is usually extortionate.
    Censorship Reigns Supreme in Troll City...

  • Pip_Thatch
    Pip_Thatch Posts: 26 Forumite
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    My Mum has Car Insurance with Saga, I am listed as 2nd driver.
    We are in process of changing vehicle, so I rang them to notify.
    They wanted another 115 quid, I explained the vehicle was 2 years old, smaller cc than existing car how was it that dear ???
    The reply "it's a newer car"
    Fair enough, but we have downsized in Car.
    We renewed in March, just wondering if it's worth cancelling and losing £50
    or stick it out and pay the extra.
    Policy is in Mum's name but she hardly drives now.
    Any suggestions please.
    Thanks.
  • dunstonh
    dunstonh Posts: 116,374 Forumite
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    They market as the trusted brand for the 50+, in reality the older you get, the more they fleece you.

    SAGA were slated in the annuity market as well. Their terms were always worse than those obtained by IFAs. Ironically, Ros Altman was in charge of things back then and defended the model until she decided to go all consumer protection minded.
    Any suggestions please.

    not saga at renewal.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • teddysmum
    teddysmum Posts: 9,471 Forumite
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    edited 15 October 2016 at 2:48PM
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    We only have one car with them; my old Punto, but the cover is only about £130 per year (including a year's free vehicle breakdown), but about two years ago, they refused to cover our Punto sporting; no reason given.
    I know their pet insurance is dear as in a newspaper article people were complaining about the huge jump in costs once the dog was about 7 years old.
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